What is the deadline for the Epcon Communities franchisee to remit payment for the use of Higharc Services?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee acknowledges that Franchisor may, in its sole discretion, suspend, limit or revoke a Franchisee's right to use the Higharc Services if Franchisor determines that Franchisee, its agents, employees or owners, have failed to comply with the requirements and obligations pertaining to the Higharc Services. Notwithstanding any such suspension, limitation or revocation described above, the obligations of Franchisee to pay the Technology Royalty under this Addendum will continue without reduction until such time as all amounts owed by Franchisee to Franchisor under the terms of this Addendum are indefeasibly paid in full.
In consideration for use of the Higharc Services, commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project, Franchisee shall remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Franchisor in an amount equal to One-Thousand Five Hundred No/100 Dollars ($1,500.00) (the "Technology Royalty"). No later than two days prior to a Unit's closing, a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Technology Royalty payment for such Unit, shall be provided to Franchisor.
If, in strict accordance with the terms of the Franchise Agreement, Franchisee requests any change or modification to the Development System in connection
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the payment deadline for Higharc Services depends on the type of service provided. For the Technology Royalty, which is $1,500 per unit, payment is due contemporaneously with the closing of the sale of each unit in the project. The franchisee must remit the payment or ensure it is remitted by the escrow agent, attorney, or any other person conducting the closing. Additionally, a Settlement Statement or Settlement Disclosure Form reflecting the Technology Royalty payment must be provided to Epcon Communities no later than two days prior to the unit's closing.
In cases where the franchisee requests changes or modifications to the Development System plans to meet local zoning or building code requirements, and Epcon Communities approves these changes in writing, Higharc will perform the modifications. The franchisee is then obligated to pay Epcon Communities $200 per hour for Higharc's services.
Payment for these modifications is due within ten business days of the invoice date. Time for services rendered is billed in minimum increments of one hour. Therefore, franchisees need to manage their project timelines and modification requests carefully to ensure timely payments to Epcon Communities for Higharc services, adhering to the specific deadlines for both the Technology Royalty and hourly service fees.